The bill amends the Use Tax Act to establish tax exemptions for data center equipment sold to qualified data centers and colocated businesses, effective from January 1, 2016, to December 31, 2050. The exemptions are contingent upon meeting specific job creation thresholds, starting with a requirement for local economic development corporations to certify the establishment of at least 400 data center industry jobs by January 1, 2022, which will increase to 1,000 jobs after January 1, 2026. Additionally, the bill mandates that the Michigan Strategic Fund, now referred to as the "bureau," provide reports on job creation to legislative leaders and the governor.

Moreover, the bill introduces a new exemption for enterprise data centers, effective from April 2, 2025, through December 31, 2050, or until December 31, 2065, for certain brownfield sites. This exemption applies to data center equipment sold to qualified entities, contingent upon obtaining a valid certificate from the bureau. The bill outlines the application process for this certificate, reporting requirements, and conditions for revocation if the facility no longer qualifies as an enterprise data center. It also sets forth requirements for facilities to meet green building standards, including a minimum capital investment of $250 million, job creation mandates, and restrictions on state or local property tax benefits without local approval. The term "Michigan strategic fund" is replaced with "bureau," indicating a shift in oversight responsibilities.

Statutes affected:
Senate Introduced Bill: 205.94